Shares of Tesla Inc. took another dive Wednesday to kick off a correction, after the electric vehicle maker disclosed that one of its largest shareholders sold off a chunk of stock, although the sale was effectively just a rebalancing as the value of the stake has actually increased.
What may be unnerving investors is the disclosure comes a day after the company itself said it would sell up to $5 billion worth of its stock. Separately, although BofA Securities analyst John Murphy raised his price target to imply a near-30% gain from current levels, he stopped short of recommending investors buy the stock.
dropped 5.8% to $447.37 in active trading, to mark the biggest one-day decline in about six weeks. The stock has now tumbled 11.4% since it closed at a record $498.32 on Monday, when its 5-for-1 stock split took effect.
Many on Wall Street